Entrepreneurship: A strategy for Creating Innovative ...

Journal of the Faculty of Tourism and Hotels-University of Sadat City Vol. 2, Issue 1, June 2018

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Entrepreneurship: A strategy for Creating Innovative Tourism

Products in Egyptian Travel Agencies

Dalia Hassan

Assistant Lecturer in Tourism Department,

Faculty of Tourism & Hotel Management,

Pharos University

Nehad Mohammed Yehia

Professor in Tourism Studies department

Faculty of Tourism and Hotels, Sadat City

University

Amany Refaat Mohammed

Professor in Tourism Studies, Sadat City

University, Dean of faculty of Tourism and

Hotel Management - Pharos University

Hebatallah Ali Gaafar

Associate professor in Tourism Studies

department, Faculty of Tourism and Hotels,

Sadat City University

Abstract

This paper discusses various definitions of entrepreneurship and innovation and

their approaches in the context of Egyptian travel agencies. The objective of

the paper is reveals entrepreneurship innovative products of the Egyptian travel

agencies. In addition, examine the relationship between entrepreneurship and

the survival of travel agency; ascertain whether changes in preference of

consumers, Employees' perceived risk-taking, external environment, travel

agency characteristics and resources. Also, identify factors which affect

entrepreneurship and innovation activities, and design a framework to increase

innovation and competitiveness of Egyptian travel agencies. Questionnaires

were employed to Egyptian travel agencies. Results have shown that

enhancement in the production process are so important in the survival of travel

agencies. There is a significant relationship between entrepreneurship of

product innovation and travel agency's survival. However; there is a significant

relationship between entrepreneurship of product innovation and research

variables except Employees' perceived risk-taking and External environment.

This study involvement to practice is twofold, affecting the managers of travel

agencies and policy makers. Distinguishing the factors affecting adoption

would enable managers to devise strategies and prepare better agendas for

expanding their businesses; at the same time identifying any defects and

training need that present barriers. Meanwhile, encourage travel agencies to

adopt the philosophy of entrepreneurship and innovation or to plan policies and

initiatives aimed specifically at supporting the adoption of entrepreneurship

and innovation by Egyptian travel agencies.

Keywords: Entrepreneurship, Innovation, Small and medium enterprises,

Entrepreneurship Innovative Products, travel agents.

Introduction

There are many tourist products outputted by several travel agencies that are

quite similar to each other; and it might be difficult for us to identify which

product is innovative or entrepreneur, since the difference among these

products may be very small. Where, it is implicit that the new product is

different from all other available products, and then the new product should be

very highly innovative product.


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Although adding services may seem, at first, a rather easy expansion of current

business, many travel agencies have experienced great difficulties in managing

these changes. Where, low awareness of the role of innovations and

entrepreneurship in economic development, domination of financial

instruments in support to innovations over other solutions, focus on generating

new solutions rather than on their implementation, lack of use of support

instruments addressed to high-tech industries, insufficient development of

educational programs which shape innovative attitudes.

Entrepreneurship and innovation has an important role on the changing of

market conditions and achievement of competitive strategies. According to

Nedim et al., (2014) the secret of competitive advantage is innovation. As it is

seen, innovation in travel agencies is important for tourism industry; however

empirical studies on the issue of innovation in SMEs in tourism industry are

relatively insufficient. The aim of the research, therefore, is to examine

entrepreneurship innovative products of travel agencies in Egypt. In addition,

the paper aims to examine the relationship between entrepreneurship,

innovation and the survival of travel agency. In the conclusion section, future

implications will be presented.

Literature Review

Defining Entrepreneurship

Defining entrepreneurship is difficult as there is no common or clear definition

of the term. Even though, in its most basic sense, entrepreneurship is identified

as “manifest in a business venture when an individual is able to turn a novel

idea into a profitable reality” (Hoffman & Gabr, 2006, p: 7). However,

entrepreneurship – in practice – is more comprehensive, ranging from

operating a small business in one‟s own home, to bringing a national franchise

to a small town, to turning a new and unique idea into a high-growth company.

Furthermore, it involves both the discovery and exploitation of opportunities to

bring into existence new products and services (Shane, 2000).

Entrepreneurship is also defined as a “process of actions of an entrepreneur

who is a person always in search of something new and exploits such ideas into

gainful opportunities by accepting the risk and uncertainty with the enterprise

(Chand, 2016, p: 12).While Atsan et al. (2006, p: 9) refers to the entrepreneurs

who are having knowledge and ability comparable to managers, we have to

consider the concepts of opportunity costs, risk and innovation that merge the

risk-bearing characteristics with the innovative characteristics.

The term Entrepreneurship is denoted and described as "the attempt to create

value through recognition of business opportunity, the management of risk-

taking appropriate to the opportunity, and through the communicative and

management skills to mobilize human, financial, and material resources

necessary to bring a project to fruition" (Atsan et al., 2006, p: 9). Consequently,

entrepreneurship is a process achieved by idea generation through product or

service realization until reaching risk management (Drucker, 2004).


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Importance of Entrepreneurship

Entrepreneurship offers the following benefits to travel agencies (Gorman,

2010):

a) Development of managerial capabilities;

b) Creation of organizations;

c) Improving standards of living;

d) Means of economic development.

By fostering entrepreneurship, there are benefits that travel agencies can own

(Sexton, 2001):

(i) Increases the travel agency‟s liveliness.

(ii) Increases innovation capital of the travel agency.

(iii) Strategies emerge from all sides and dependence on top

management is reduced.

(iv) New ideas emerge in-house and can be incorporated without

spillage of plans to competitors.

(v) Increases confidence and outlook of the travel agency.

Factors Affecting Entrepreneurship Casson (2003) has come up with the fact that Entrepreneurship is a complex

phenomenon influenced by the interplay of a wide variety of factors. Some of

the important factors are listed below:

a) Personality Factors:

Personal factors, becoming core competencies of entrepreneurs, include

(Chand, 2016):

i) Initiative ii) Proactive iii) Perseverance

iv) Problem-solver v) Persuasion vi) Self-confidence

vii) Self-critical viii) A Planner ix) Risk-taker

b) Environmental factors:

Environmental factors are those conditions that entrepreneur has to consider,

such as political climate, legal system, economic and social conditions, market

situations, etc. (Georgellis et al., 2000).

Functions of Entrepreneurship Where many studies distinct attributes of the entrepreneur‟s function

(Westgren, 2006):

a) Ownership or operation of a travel agency

b) Risk and uncertainty bearing

c) Innovation or the reallocation of resources

Transition from entrepreneurial activities to entrepreneurial

personality Enterprising personality has distinctive characteristics separating the

entrepreneur from others. Therefore, in the last few years there has been a

growing interest in the level of impact of personality and environmental factors

on entrepreneurship. Entrepreneur people can see the opportunities that others

cannot, can take risks and seize opportunities, can create innovation and dare to

implement (Coulter, 2001).


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Consequently, the success of the entrepreneur depends on many features such

as the amount of the capital, the knowledge about the enterprise, the experience

required and implemented, in addition to the market stability. Even if the

chance of success depends on many different environmental and demographic

factors, the real key determinant factors are the characteristics which the

entrepreneur carries himself. Characteristics of entrepreneurs can be defined as

persons seeing change as an opportunity, being innovative, imaginative,

creative, and flexible, having the ability to endure ambiguity, being adaptable,

reliable, being able to take risks, being persistent, responsible and self-reliant.

In addition, these persons have the strength to endure the struggle of life, and

have more motivation in achieving the objectives (Hisrich & Drnovsek, 2002).

The most important characteristic of the entrepreneurial personality is the

predisposition or tendency of taking risks. Entrepreneurial risk includes

believing in a maximum return and to realize the venture with rational

decision-making. Prior experience in the work field and entrepreneurial

instincts also play an important role on the amount of risks the entrepreneurs

may take. These factors; creating the entrepreneur personality are at the same

time the basic qualities separating the entrepreneur individual from the average

individuals (Rasmussen & Sørheim, 2006).

Defining Innovation

OECD (2011, p: 10) defined innovation as “the introduction of something new

or different”. Innovation is the implementation of creative inspiration. The

National Innovation Initiative (NII) introduced innovation as “the intersection

of invention and insight, leading to the creative of “social and economic value”

Innovation is “value” – the creation of value adding value to customer‟s

satisfaction “delighting the customers”. (Stone, 2009, p: 22).

Hansen and Birkinshaw (2007, p: 32) assumed that innovation is “the

introduction of a new product, service, or process through a certain business

model into the marketplace, either by utilization or by commercialization”.

Hence, it encompasses: product innovation, service innovation, Process

innovation, and business model innovation, and all contribute to strengthen the

competitive advantage of a certain company.

While Johannessen et al. (2001, p: 18) defined innovation as "the creation of

something new ", he distinguished five areas in which companies can introduce

innovation as the following:

a) Generation of new or improved products.

b) Introduction of new production processes.

c) Development of new sales markets.

d) Development of new supply markets.

e) Re-organization and/or restructuring of the company.

The importance of innovation in entrepreneurship is another key value for the

longevity of travel agencies (Kunstler, 2007). Competition is regarded as one

of the factors that raise the importance of innovation in entrepreneurship.


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It stimulates any entrepreneur to come up with something much better than

their competition in a lower price, and still be cost-effective and qualitative

(Rose, 2009).

Innovation is important, not just in entrepreneurship. The innovation in

entrepreneurship helped the country by changing with the times through

producing new products and providing services from ones that already exists.

Hence, being innovative helped people to become successful in all their

endeavors (Miroslava, 2016).

Innovation Forms Innovation can be categorized in three broad strands (Paul, 2010):

a) Product Innovation

b) Service innovation

c) Process innovation

Innovative Products

Mcaloone & Tan (2006, p28) defined product innovation as “the creation of a

new good which more adequately satisfies existing or previously satisfied

needs”. The tourist product should not be seen from the individual producer

point of view (such as the hotelier or the transportation company) but from the

point of view of the consumer, thus equating the tourist product with his/her

total travel experience. The tourist product should be perceived as including all

the elements that are part of a trip (Koutoulas, 2001).

From the consumer‟s point of view, the tourist product amounts to his/her

travel experience, including everything experienced and consumed as part of

the trip. The product is an experience that is achieved through the combination

of a diverse array of products and service. Furthermore, the tourist product has

the characteristics of a type „A‟ service due to the fact that the tourist becomes

the external factor of the production process and participates in the provision of

services by tourist businesses (Hansen & Birkinshaw, 2007). Tourist products

consist of numerous components due to their complex nature. These

components come in various forms (Koutoulas, 2001):

Integral products that can be sold independently on the market (such as

hotel accommodation, air transport, admission to visitor attractions etc.)

“Free” or “public” goods such as the climate and the scenery, that can

be consumed by tourists for free

Complementary services that cannot be sold independently on the

market, such as the services provided by a tourist information office or

by a tour leader.

The dimensions of the Product innovation performance

New product innovation has been identified as the key to travel agencies'

marketplace success, profit and survival. Yet, the failure rate for new products

is high. Because of the high costs associated with new product development.

Accordingly, there is considerable theoretical and managerial interest in how to

minimize the high failure rates of new products and what separates new

product winners from losers (Aaron, 2015).


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In examining previous researches, it is found that some criteria such as

customer satisfaction, reputation and competitive advantage produced, despite

being considered by managers to be the most useful, are rarely mobilized as

measures in reality (Driva et al., 2000).

Blindenbach and Van-den-Ende, (2010) saw product innovation performance

as the combination of two dimensions: operational performance and product

performance. "Operational performance reflects how the innovation project

was executed, while product performance evaluates the commercial outcome of

an innovation project”

On the other hand, Easingwood et al., (2009) highlighted that there are eighteen

items for product innovation performance measurement and classified them

into five dimensions:

a) Financial performance;

b) Market performance;

c) Technical performance;

d) Customer performance and

e) Strategic performance

Research Methodology

In this study, the researcher adopted semi-structured questionnaire; a mixture

of closed-ended, open-ended and partially closed-ended questions are used to

allow the respondents to choose the most relevant answers and also add extra

information if they wish, representing their opinions. The questions were

designed by focusing on the constructs and variables that have been identified

in the literature. It should be noted that some of the questions were developed

specifically for this study. The questionnaire was designed in English and

comprised 95 questions. The questions were designed to be precise, simple and

comprehensible by avoiding ambiguous, vague, estimation, generalization,

leading, double-barreled, and presuming questions. Clear instructions were also

provided for each question. Some of the questions were expressed positively

and some negatively in order to encourage respondents not to respond

automatically, but to think about every item.

The questionnaire in this research consisted of seven sections to measure the

following variables; changes in taste and preference of consumers, employees'

perceived risk-taking, external environment, travel agency characteristics,

resources, entrepreneurship of product innovation.

A 5-point Likert scale anchored by Strongly Agree (5) Agree (4), Neutral (3),

Disagree (2), and Strongly Disagree (1) in the following sectors:

a) Changes in taste and preference of consumers

b) Employees' perceived risk-taking

c) Resources

d) External Environment

e) Travel Agency Characteristics

f) Entrepreneurship of product innovation


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While another 5-point Likert scale anchored by very positive (5), positive (4),

moderate (3), negative (2), and very negative (1) on the sector of travel agency

characteristics.

The questionnaire was distributed by referrals and snowball sampling to a total

of 50 Egyptian travel agencies (ETAs). Participants were owner-managers of

(ETAs) in the tourism sector. Participants were asked to complete the

questionnaire and comment on any ambiguous statements or instructions and

difficulties they face during the process. They were also asked to indicate the

time taken to complete the survey. In order to obtain initial rough estimates of

the reliabilities of the scales, Cronbach alpha reliabilities were calculated at this

stage.

Validity and Reliability

During the piloting of the questionnaire, it was recommended by all members

of the panel that the questionnaire should be piloted on travel agents to assess

the construct validity. Although a sample of ten is considered adequate for

piloting questionnaires (Saunders et al., 2003).

Corrected item-total correlations were used to measure the constructs of the

study and its indicators. Indicator loadings between 0.35 and 0.80 in corrected

item-total correlations are deemed to show that the retained indicators are valid

for measuring the questionnaire constructs (Netemeyer et al., 2003).

Reliability Rule: Cronbach's Alpha > 0.70

Validity Rule: 0.30 < Corrected Item-Total Correlation < 0.80

To sum up, both the content and construct validity of the questionnaire form

were addressed to ensure that the measuring instrument measured what it was

supposed to measure. The questionnaire form was first checked by 15 academic

researchers to determine how readable it was and to ensure that the form

properly covered the concepts it was meant to investigate.

After excluding the questionnaire construct's items and according to the

corrected item-total correlations rule given above, table (6) shows that the

questionnaire items are valid and that Cronbach‟s alpha for the questionnaire

constructs is between .710 and .925 which mean that the reliability of

questionnaire questions is > 0.70.

The choice of sample size depends on many factors, including the level of

certainty and margin of error required the types of analyses to be run, and the

size of the total population (Saunders et al., 2007).

Researchers normally work to a 95% level of certainty. Regarding margin of

error, in terms of the precision of the estimates made about the population,

most business and management research uses a margin of plus or minus 3-5%

of the true value. According to Saunders et al. (2003), the actual sample size

that should be used (na) can be calculated by the formula:-

na=

Where (n) is the sample size required, defined according to the margin of error

and a confidence level of 95%, re% is the estimated response rate, represented

as percentage.


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Based on Saunders et al. (2003), if the margin of error is selected to be 5% and

the population size is between 750-1000, then the required sample size is 254-

287. Supposing that the response rate in this study is 90%, as the questionnaire

will be delivered and collected by hand, to travel agents who have agreed in

advance that they will fill in the form, and then according to the sample size

formula, the sample size that should be used is as follows:-

na=

=

= 309

Therefore, this research study considered ETAs with a headcount between 10

and 200 employees as SMEs. Having decided on the definition to be used for

SMEs to define the population in Egypt, the second step consisted of the

selection of an official and reliable source of information to identify the SMEs.

The first official and reliable source was the website of the

(www.etaaegypt.org). In the light of this, it should be noted here that the

population identified by researcher was 309 ETAs. That is why a census was

considered to collect and analyze data from every possible case. As a result, all

the concepts of sampling were not used at this stage.

Therefore, 320 questionnaires were distributed and 266 valid completed

questionnaires were returned.

Analysis and Results The researcher used the descriptive analysis that refers to the transformation of

raw data into a form that would provide information to describe a set of factors

in a situation that will make them easy to understand and interpret (Bougie,

2010). Salkind (2006) described descriptive statistics as the characteristics of

the sample.

The five-dimensional Likert scale was used in this study as mentioned earlier.

The figures of this scale (1 to 5) were converted to averages for expressing the

weights of the study variables. The mean was calculated for each number in the

scale and the direction for each element. The following table shows this. It is

noted that the length of the period is 0.80 (4/5) where the scale contains four

distances between the numbers (distance from "1" to "2", "2" to "3", "3" to "4"

4 "to" 5 ") so 4 m 5 5 points =" 0.80 "

Table No (1) Demographic characteristics of the respondents

Respondents Position F % Working

Experience F %

GM Manager 49 18.3 1-9 years 63 23.7

HR Manager 88 33.7 10-15 years 56 21.1

Operation Manager 9 2.9 16-20 years 91 34.2

Marketing Manager 64 24.1 21-25 years 49 18.4

Product Development

Manager 56 21

26 and

above 7 2.6

From table 2, it is clear that the high percentage of travel agencies (34.2%)

have working experience between 16-20 years. As well as, the high percentage

of respondents‟ were (33.7%) "HR Manager".


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Table No (2) strategy of Entrepreneurship and innovation

Yes No

F % F %

Your company has a strategy for

Entrepreneurship and innovation 91 34.2 175 65.8

Long-Term Short-Term

F % F %

If yes, this strategy is 35 13.2 56 21.3

The output tells us that 34% of Egyptian travel agencies have a strategy

between long-term strategy (13%) and short-term strategy (21%). However

66% of these travel agencies didn't have a strategy of entrepreneurship and

innovation.

Using 20 items to measure change in taste and preference of consumers, it is

found that the high attitude of respondents is strongly agree (Mean = 4.25) that

refers Egyptian travel agencies look for ways to find new markets and needs.

But there is main attitude of respondents is agree which refers to ETA add new

products to their existing range of service. Trying to find new ways of building

and improving relationships with consumers, there are continuously efforts to

innovate products delivery and operation systems look for ways to improve our

promotion methods and tools and they often change the ways of presentation of

the products. On the other hand, the result showed that there is negative attitude

of respondents which refer to the ETA didn't offer products that can compete

with competitors.

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Figure No. (1) Change in Taste and Preference of Consumers

Figure No. (2) Employees' Perceived Risk Taking


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Using 23 main items to measure "Employees' Perceived Risk Taking" results

revealed responses were the common attitude of respondents is agree that refers

to the managers/employees of ETA look at a problem from many different

perspectives and always challenge a decision at work if they thought it was

necessary. In addition to, adapt older methods of doing things rather than

dream up totally new ideas. Consequently, avoid getting caught up in problems

that have no clear-cut answers and they aware that they are team in the

workgroup to accept something new. Where there is either agree attitude of

some respondents which refer to the managers/employees of ETA analyze new

ideas carefully before using them for work and feel constrained by the work

culture in their travel agencies. On the other hand, the results show that there is

strongly agree attitude of the respondents which refers to the

managers/employees in ETAs feel strongly about a proposal they would take a

stand against others.

Employing 4 items to measure the impact of "External Environment", 33.8% of

respondents operating in one or a few specific market-niches and offers

standard products As well as, 10.5% of respondents offers differentiated

products, and they are produced at lowest cost.

The common respondents opinions were positive which refers to the Egyptian

travel agencies characterized by Customer and employees satisfaction, develop

new generation of products through time management and expansion of their

market share. On the other words, these results mean that these travel agencies

have characteristics allow adopting the philosophy of entrepreneurship and

innovation in their products/services.

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Figure No. (3) External Environment

Figure No. (4) Travel agency Characteristics


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Recording of measure learning resources is Agree by respondents, which

meaning that there are interests about providing resources towards such

practice and the interests about how to win new markets and gather data about

those markets, how to network with other agencies and design a joint offering,

how to win new markets and gather data about those markets, and their

interests about new forms of marketing (social networks, E-marketing). As well

as, the results show that there is another attitude by the respondents that it is

“either agree” which refers to the ETA interests about how to procure raw

materials.

Through analysis respondents‟ point of view about "Entrepreneurship of

product innovation", the most respondents' opinions were agree which refers to

the Egyptian travel agencies recognize profit opportunities brought about by

economic shocks, capable of developing a financial plan for a business idea,

they are sufficiently knowledgeable in information and communication

technology (the Internet, computers, booking systems, etc.), implement change

within markets through conquest of a new source of supply of new materials or

parts and through carrying out of the new organization of any industry, and

assume the consequences of uncertainty related to the innovation.

0

1

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Figure No. (5) Learning Resources

Figure No (6) Entrepreneurship of product innovation

00.511.522.533.544.55


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On the other hand, there is strongly agree attitude by the respondents which

refers to the ETA implement change within markets through introduction of a

new good or quality thereof and implement change within markets through

introduction of a new method of production. Also, the results show that there is

“either agree” attribute by respondents which refers to ETAs‟

managers/employees have a strong emphasis on technological leadership, and

innovations, recognize profit opportunities brought about by economic shocks,

and adept at handling financial accounting (corporate finance, taxation). On the

other words, these results refer to the Egyptian travel agencies practice the

activities of entrepreneurship and innovation in the production process. Table No (3) ANOVA Analysis

Model Sum of

Squares Df Mean Square F Sig.

1

Regression 40.055 5 8.011 200.088 .000b

Residual 9.409 235 .040

Total 49.464 240

a. Dependent Variable: product_innovation

b. Predictors: (Constant), Resources, External_Environment, Characteristics, Taste, Risk

From ANOVA Table, it is revealed that this effect of factors (changes in taste

and preference of consumers, employees' perceived risk-taking, learning

resources, external Environment, travel agency characteristics) on

(entrepreneurship of product innovation) is significant where the value of F is

200.088 and sig.<0.05. Table No (4) Matrix of coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B Std. Error Beta

1

(Constant) .339 .128 2.660 .008

Taste .519 .040 .542 12.975 .000

Risk .063 .043 .062 1.458 .146

External

Environment -.035 .028 -.036 -1.246 .214

Characteristics .139 .039 .146 3.560 .000

Resources .194 .024 .302 8.121 .000

a. Dependent Variable: product_innovation

From Coefficient table, it is found that taste has the greatest positive effect on

product innovation where β= .519 and sig. < 0.01 (H1: “There is a positive

relationship between changes in taste and Entrepreneurship of product

innovation” is supported).

As well as, Employees' perceived risk-taking has insignificant effect on

innovation where β= .063 (H2: “There is a positive relationship between

Employees' perceived risk-taking and Entrepreneurship of product innovation")

Also, the results show that external environment of travel agencies in Egypt has

insignificant effect on product innovation where β= -.035 (H3: “There is a

positive relationship between External environment and Entrepreneurship of

product innovation” are not supported).


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In addition, it is found that the travel agent characteristics have positive effect

on product innovation where β= .139 and sig. < 0.01 (H4: “There is a positive

relationship between Travel Agency Characteristics and Entrepreneurship of

product innovation” is supported).

While resources have positive effect on product innovation where β= .194 and

sig. < 0.01 which refers to (H5: “There is a positive relationship between

Resources and Entrepreneurship of product innovation” is supported).

Hence, the hypotheses of this research that based on the literature review were

formulated as the following:-

** Significant at .01 and

ns Not Significant

Contribution of the Study The following model illustrate that there are three factors of innovation,

creativity and entrepreneurship together to enhance travel agencies' success.

Entrepreneurship has always been associated with innovation, creativity and

entrepreneurship that is so necessary and interdependent. Entrepreneurship

without creativity and innovation does not bear any results.

Creativity and innovation within well-run travel agencies have recognized as a

sure path to success through configuring innovative culture between the travel

agency employees using the latest technology, where stimulating creativity

leads as result to increasing the productivity of the Egyptian travel agency.

Encouraging the employees to think outside of the box and giving them time

and resources to explore new areas for innovative ideas is the key to cost-

effective business solutions.

In addition, ETAs should be considered their consumers preferences, and

calculate the financial, health, career, and social risks of their business. Thus,

the ETAs after evaluating opportunities, they attract resources such as,

financial resources, human resources, information resources and so on.

Employees'

perceived risk-

taking

.063ns

Entrepreneurship of

product innovation

R2= .81 .519**

Changes in taste and

preferences of

consumers

.139**

.194** Travel Agency

Characteristics

-.035ns

Learning

Resources

External

environment

Figure no. (7): Research Hypotheses Test


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Hence, ETAs should estimate the triggers and barriers for exploitation of their

opportunities within determining the needs of their marketplace.

ETAs can improve the process of solving problems through developing a new

strategy or an innovative way to stay ahead of the competition. Creative

problem solving gives that competitive edge that travel agency is striving to

achieve.

Creative ideas and innovative approaches can come from almost anywhere-

from your partners, customers, target groups, employees. They can bring you

fresh perspectives and ideas, so show them that you‟re listening and open to

their feedback. That's why it is important an open exchange of ideas to be

supported and encouraged by the travel agency.

As well as, the travel agency's managers should build their entrepreneurial

skills to be effective such as:

Take a different path: Travel agencies' managers should build their

creativity skills, intentionally try something new. They should do

something that others won‟t do. Where, creativity is the root of

entrepreneurship and it is the ability to see things differently and to

provide solutions where there are gaps.

Stick with challenges: in other words, stay with problems longer. Travel

agencies' managers should learn to develop their perseverance through

creates a goal or challenge that is meaningful and don‟t give yourself to

drop. Alternatively, give yourself a deadline to aim towards.

Delay gratification: Managers have to get used to countless failures and

almost zero rewards until they finally access to success.

Practice communication skills: The travel agencies' managers should

learn how to communicate their passion and dreams in an engaging way,

both online and offline. To learn how to speak publicly, offer to speak at

workplace parties. They can improve their online communication skills

through staying active on their social media accounts, blog, set up an

online Facebook group or create a newsletter on your favorite hobby or

topic.

Get involved with other entrepreneurs: Whether it‟s attending

entrepreneurial events, conferences, or seminars; spending time with

other entrepreneurs will help you grow in your own entrepreneurial

skills.

Help others with their businesses: The travel agencies' managers should

solving problems with the resources that they have. The more they help

others solve problems with their own businesses, the more they own

skills will grow.

Keep learning: The travel agencies' managers should keep their own

learning and personal development active. With such easy access to

knowledge and resources, there really is no excuse that they can‟t build

skills to succeed as entrepreneurs in their travel agencies.


-15-

Production of new and useful ideas

Discover of Opportunities

Output: new ideas

Distillation, Evaluation of the new ideas

Evaluating of Opportunities

Output: trial product; copyright; business plan

Creation of Value in the

market place

Exploitation of

Opportunities

Output: New Products,

New Services or New

Process

Creativity

Innovation

Entrepreneurship

Technology

Market

Latest Technology

Needs in Marketplace

Environment Environment

Environment Environment

Attract Resources

Entr

epre

neu

r (T

rave

l Age

ncy

Man

ager

/Em

plo

yee)

Consumers Preferences

Calculate Risks

Triggers and Barriers

Innovation

Culture

Entrepreneurial

Framework Conditions

Trav

el A

gen

cy S

urv

ival

/Gro

wth

Figure no. (8): Conceptual Research Model


61

Conclusion Entrepreneurship drives innovation, competitiveness, job creation and

economic growth. It allows new/innovative ideas to turn into successful

ventures in high-tech sectors and/or can unlock the personal potential of

disadvantaged individuals to create jobs for themselves and find a better place

in society. Entrepreneurship is creative destruction. Dynamic disequilibrium

brought on by the innovating entrepreneur, rather than equilibrium and

optimization, is the norm of a healthy economy and the central reality of

economic theory and practice.

The tourism entrepreneur searches for change, responds to it, and exploits it as

an opportunity. Innovation is the specific tool of tourism entrepreneurs, the

means by which they exploit change as an opportunity for a different travel

agencies or a different product/service.

The results show that there is a positive relationship between entrepreneurship

of product innovation and changes in taste and preference of consumers, travel

agency characteristics and resources but in other hand, the relationship between

External environment/employees' perceived risk-taking and entrepreneurship of

product innovation is not supported.

The possibility of product innovation was greater when the travel agency's

managers were risk takers and when they had positive opportunity recognition.

The results indicated a positive connection between entrepreneurial attitude and

innovation culture in The Egyptian travel agencies.

The results indicated that more risk-seeking travel agencies were more likely to

change the way in which products/services are supplied, the way in which they

market their products and services, and the way in which they organize the

agent and find partners.

Additionally, the results support the existence of the activities of

entrepreneurship in travel agencies in Egypt through opportunity recognition,

risk taking, and innovativeness. Moreover, this research contributes to the

entrepreneurship literature by showing that there are entrepreneurial attitudes

through recognizing business opportunities and take a calculated risk.

The results also found some barriers for adopting the philosophy of

entrepreneurship such as lack of qualified labour, reluctance to take risks, a

lack of governmental support, a lack of awareness among managers of the

benefits of innovation, employees‟ resistance to changing the traditional ways

of doing business, consumers‟ concerns, tastes and preferences.

The results suggests some benefits that are helping the Egyptian travel agents

to market packages and services, improving their competitive advantage,

enhancing customer satisfaction, ease of carrying out transactions, increasing

sales and revenues, the effective re-intermediation of travel agents, and

supporting collaboration among business partners.

Applying entrepreneurship in The Egyptian travel agencies should focuses on

"what may be" or "what can be" by looking for what is needed, what is


61

missing, what is changing, and what consumers/tourists will buy during the

coming years.

Major factors determining success of an innovative product in the tourism

market are the products that provide functional advantages; Lower price for

comparable product; More attractive design; Reputation of brand; Easy access:

Available in the main retail travel agencies; Consistent product quality;

Excellent after-sales services.

It is clear that travel agents face the threat of consumers' changes in their tastes

and preferences. As well as, travel agencies are characterized by their slow

adoption of innovation.

The results help to answer the question of why Egyptian travel agencies are

reluctant to adopt innovation and entrepreneurship philosophy even though it

could improve their competitive position and improve their survival chances.

Although environmental pressures push travel agents to adopt innovation and

the philosophy of entrepreneurship, some agents do not believe that benefits

can be gained from adoption, while others believe there are benefits and have

taken some steps towards adoption but face barriers that prevent them from

moving to a higher level of innovation.

For both the managers of Egyptian travel agencies and policy makers, they

have to recognizing the factors affecting innovation and entrepreneurship

philosophy adoption that could enable managers to devise strategies to expand

their business and gain the perceived benefits of adoption, while identifying

any defects and training needs that present barriers.

Managers will be able to prepare better agendas for expansion and set priorities

regarding the implementation of innovation and entrepreneurship philosophy

adoption. The findings of this study revealed that marketing benefits are

perceived to be the greatest factor affecting innovation and entrepreneurship

philosophy adoption. This could form the initial aim in the basic adoption of

innovation and entrepreneurship philosophy. Later development strategies

could include a route map for upgrading the adoption level and achieving more

strategic benefits of adoption.

The results reveal that future survival is supported by the adoption of

innovation and entrepreneurship philosophy and this should provide an

incentive to travel managers to become more innovation and entrepreneurship

philosophy-oriented so as to improve their competitive position. Attracting new

services and investment could help travel agents to work independently from

tour wholesalers, airlines and hotels; this can be achieved by adopting

innovation and entrepreneurship philosophy. Collaboration with other travel

partners could strengthen their competitive advantages, support their sales and

revenues, and increase the opportunities to expand, penetrate other

international markets and increase the customer base.

Managers might also note that adopting innovation and entrepreneurship

philosophy can improve internal business efficiency by increasing internal

knowledge sharing and accountability among employees, and enhancing the


61

process of strategic managerial decision making. Improving internal

operational efficiency can positively affect the image of a travel agent, enhance

customer satisfaction and loyalty, and increase survival prospects.

The implementation of innovation and entrepreneurship implies putting the

idea of adoption in to practice. The implementation stage is the next step after

the decision to adopt an innovation has been made by the manager. For travel

agencies managers who are willing to adopt innovation and entrepreneurship

philosophy, a clear strategy of implementation is crucial. Adopting the step-by-

step strategy is particularly appropriate for travel agencies with limited

resources and those that are uncertain of the potential the internet can offer

their business.

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العربى الملخص

عمال فً خٌرة على فكر الإبتكار ورٌادة الألقد أصبح هناك تركٌز متزاٌد فى الآونة الأغٌر أن والمتوسطة. فضلاً عن دورهم المتزاٌد فً صناعة الضٌافة.الشركات السٌاحٌة الصغٌرة

بتكار قد طٌبقت على الشركات السٌاحٌة على نطاق محدود. من هنا تناول بحوث تنظٌم المشارٌع والإبتكار ونهجها فً سٌاق شركات السٌاحة المصرٌة. فات المختلفة لرٌادة الأعمال والإهذا البحث التعرٌن هذا البحث هو الكشف عن رٌادة المنتجات المبتكرة بشركات السٌاحة المصرٌة. وقد كان الهدف مبتكار وبقاء شركات السٌاحة، والتحقق من كل من لإة العلاقة بٌن رٌادة الأعمال وافضلاً عن دراس

دراك الموظفٌن للمخاطر، البٌئة الخارجٌة، خصائص إفً الأذواق وتفضٌل المستهلكٌن، التغٌٌراتؤثر على أنشطة سفر والموارد التى تستلزم توافرها لرٌادة المنتج المبتكر، تحدٌد العوامل التً توكالة ال

بتكار والقدرة التنافسٌة لشركات السٌاحة وكذلك تصمٌم إطار لزٌادة فكر الإ بتكار،رٌادة الأعمال والإات السٌاحة فً مصر. المصرٌة. وتحقٌقا لهذه الغاٌة، تم إعداد استبٌان تم توزٌعه على عدد من شرك

وقد أظهرت النتائج أن تعزٌز عملٌة الإنتاج مهمة جدا فً بقاء شركات السٌاحة. وأن هناك علاقة ، وكذلك علاقة وطٌدة بٌن رٌادة المنتجات ات المبتكرة وبقاء شركات السٌاحةوطٌدة بٌن رٌادة المنتج

لمخاطر، والبٌئة الخارجٌة، وخصائص دراك الموظفٌن لإالتغٌرات فً أذواق المستهلكٌن، والمبتكرة و شركات السٌاحة وموارد وكالة السفر.

من هنا ٌمكن تمٌٌز العوامل المؤثرة على اتخاذ القرار بحٌث تمكن مدٌري شركات السٌاحة من وضع الإستراتٌجٌات وإعداد جداول زمنٌة لتوسٌع مجال عمل الشركة، وفً الوقت نفسه تحدٌد

لازمة لذلك. وفً غضون الاعتراف بالحواجز أمام اتخاذ القرار ٌمكن أن ٌشجع الإحتٌاجات التدرٌبٌة الاعتماد الهٌئات الحكومٌة وصانعً السٌاسات على تنفٌذ التدابٌر المناسبة لتشجٌع شركات السٌاحة على

بتكار أو تخطٌط السٌاسات والمبادرات التً تهدف على وجه التحدٌد إلى دعم فلسفة رٌادة الأعمال والإ بتكار من قبل شركات السٌاحة المصرٌة.والإاعتماد فكر رٌادة الأعمال

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